The patent dispute between two Chinese DVD player manufacturers and the 4C
Patent Group, managed by the Dutch conglomerate Royal Philips Electronics, has
been heating up of late, although both sides are sticking to their guns.

Hong Kong Wuxi Multimedia Ltd and Orient Power (Wuxi) Technology Ltd filed a
lawsuit against the group, consisting of Sony Corp, Philips, Pioneer Corp and LG
Electronics in the United States, last year, the US counsel representing the
plaintiffs said on Tuesday.

The lawsuit claims the four patent holders fixed prices and unlawfully tied
their patents together, in addition to conspiring to monopolize the DVD player
market, all of which would be in violation of US law.

However, Philips claimed on Friday that there were several inaccuracies and
false allegations in recent reports about the case.

"The claim that we monopolize the market and drive Chinese producers out of
the market is incorrect," said Ruud Peters, chief executive officer of Philips'
Intellectual Property and Standards.

"If Philips wanted to drive Chinese producers out of the market, why would it
offer patent licences to them?"

He said so far, 110 Chinese DVD player manufacturers were under 4C Patent
Pool licensing.

Peters reiterated that his company had not requested European Union or US
customs authorities to block DVD players from China.

"And other claims like unlawful tying are also incorrect," Peters said.

He said DVD player producers were able to decide whether they wanted a single
licence from the Patent Pool or separate licences from each of the four
companies.

Although Philips encourages companies to take licences from the pool, which
are more convenient for both appliers and patent holders, it does not force them
to do so, Peters claimed.

Responding to Philips' statement, Anton Handal, lead attorney for the two
Chinese companies, said in practice there was no mechanism for Chinese companies
to apply for separate patents, and the blocking of Chinese DVD players was rife
throughout the globe.